How to Get a Car Loan Even if You Can't Prove Income

January 27, 2012

If you are needing a car loan, but can't prove income, you might think that you're going to be rejected. Of course in many cases this may be true, but if you wish to purchase a car, there are always ways to do it. Auto loan financing can come from either a dealership or from your bank. Sometimes proof of income car loans are not as difficult as you would think.

Things You'll Need:

  • Driver's License
  • Social Security Card
  • Insurance policy
  • Bank Statement
  • Co-Signer

Step 1:  When You Want to Buy a Car

If you don't have a car, you most likely don't have insurance. Contact an insurance company and find out if they are willing to insure you. Let them know the make and model of car you are wishing to purchase and they can do a preliminary check to make sure you could be insured.

Step 2: Assets and Bank Information

If you are a home owner, take a copy of your home payments, and at least two bank statements. If you have no absolute proof of income by pay stubs, you can often get a letter from your HR department or your employer on a company letterhead. This letter should state the name of the company, your position and your pay rate. It should also speak of your time at the company, and if they can, what your net pay per period is as well as frequency of payments. You can prove your income without pay stubs if you can provide bank statements. Many times you can find this information through your online banking service. Proof of income can come as a letter from your HR department, too.

Step 3: Secure a Co-Signer

If you are a young driver trying to purchase a car, you can secure a co-signer. The co-signer will be able to provide their own proof of employment and their bank statements to prove that they are financially responsible, in the event that the dealer is concerned with the payment schedule of the person who will be purchasing the car. With a co-signer, the original purchaser will sometimes not be required to prove their own income, as long as the co-signer is able to provide their own proof of employment.

Step 4: Auto Loan Financing

Automobile dealerships are in the business of selling cars. Many salesmen work on commission to make their own ends meet and they will work with the purchaser in the event that they are in need of a car and are unable to prove they have income. For lack of insurance, when you get approved for a car, you can go online and immediately secure proof of insurance through many different online insurance services. With proof of insurance and an alternative to pay stubs, like bank information or a co-signer, you are likely to still be able to drive off the lot with a car.

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